Reliance Industries Hits Record High as Market Capitalization Crosses ₹19 Lakh Crore

Reliance Industries, the conglomerate led by billionaire Mukesh Ambani, achieved a significant milestone as its shares reached a record high. The market capitalization of Reliance Industries surpassed ₹19 lakh crore, making it the most valued company in the Indian stock market.

The rally in Reliance shares has been remarkable, with a growth of nearly 9% in the past month alone. Over the past three months, the stock has surged by more than 24%. The company’s three-year returns on its shares stand at over 53%, reflecting its strong performance.

On the National Stock Exchange (NSE), Reliance shares jumped 4.35% to touch a new high of ₹2,824.00 apiece. The company also contributed significantly to the Nifty 50 index, adding nearly 89 points to its gains. At the time of writing, the Nifty 50 index was trading 1.42% higher at 21,656.30.

Reliance Industries reported an 11% year-on-year rise in net profit for the third quarter of FY24, amounting to ₹19,641 crore. The company’s gross revenue in Q3FY24 increased by 3.2% YoY to ₹2,48,160 crore, primarily driven by its retail and oil & gas segments. However, the oil-to-chemicals (O2C) arm experienced a decline in revenue due to lower price realisation.

The strong performance of Reliance Industries’ various segments, such as retail and oil & gas, contributed to its earnings before interest, taxes, depreciation, and amortization (EBITDA) rising by 17% to ₹44,678 crore in the December quarter. Notably, Digital Services also reported an 11% YoY increase in EBITDA.

Several financial institutions, including Emkay Global Financial Services and Nuvama Institutional Equities, have provided positive insights on Reliance Industries’ future prospects. Emkay Global Financial Services maintained its ‘Add’ rating on the company’s shares and raised its target price to ₹2,950 per share. Nuvama Institutional Equities highlighted the potential of Reliance Industries’ New Energy business and increased its target price to ₹3,105 per share.

At present, Reliance Industries shares on the Bombay Stock Exchange (BSE) were trading 4.11% higher at ₹2,821.85 apiece, with a market capitalization of ₹19.08 lakh crore.